Harris CorpFind Ratings Reports
HARRIS CORP's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 82.86% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||1909.0||1186.6|
|Net Income ($mil)||168.0||125.7|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||321.0||487.7|
|Total Assets ($mil)||11900.0||4834.5|
|Total Debt ($mil)||4793.0||1603.1|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||35.2||39.52|
|Return on Assets||0.9||10.79|
|Return on Equity||3.76||28.69|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||124.48||104.21|
|Div / share||0.5||0.47|
|Book value / share||27.04||17.66|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||886735.0||1212180.0|
BUY. HARRIS CORP's P/E ratio indicates a significant premium compared to an average of 27.55 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 3.18 indicates a premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 3.09. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, HARRIS CORP proves to trade at a premium to investment alternatives within the industry.
|HRS 91.41||Peers 27.55||HRS 11.96||Peers 12.38|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
HRS is trading at a significant premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
HRS is trading at a valuation on par to its peers.
|HRS 14.64||Peers 18.33||HRS 1.10||Peers 0.62|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
HRS is trading at a discount to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
HRS trades at a significant premium to its peers.
|HRS 3.18||Peers 3.09||HRS -81.13||Peers 51.41|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
HRS is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, HRS is expected to significantly trail its peers on the basis of its earnings growth rate.
|HRS 1.51||Peers 3.14||HRS 45.51||Peers 10.39|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
HRS is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
HRS has a sales growth rate that significantly exceeds its peers.